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Report Date : |
15.05.2013 |
IDENTIFICATION DETAILS
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Name : |
K.G.N. TRADING CO. LTD. |
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Registered Office : |
Shop 70, 2/F., Mirandor Mansion, 54-58 Nathan Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
23.02.2007 |
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Com. Reg. No.: |
37717945 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer, Exporter, Wholesaler and Retailer of all kinds of diamonds and jewellery. |
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No. of Employees : |
7. (Including retailing shop) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Hong Kong |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Hong Kong ECONOMIC OVERVIEW
Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 34.9 million in 2012, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
|
Source : CIA |
K.G.N. TRADING
CO. LTD.
(Business name: K.G.N. Trading Company)
Address: Shop 70, 2/F.,
Mirandor Mansion,
54-58
Nathan Road, Tsimshatsui,
Kowloon,
Hong Kong.
PHONE: 2377 1176, 2736 6444
FAX: 3151 7081
Managing Director: Mr. Firoz Alam
Mohammad
Incorporated on: 23rd
February, 2007.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Importer, Exporter, Wholesaler and Retailer.
Employees:
7. (Including retailing shop)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Shop 70, 2/F., Mirandor Mansion, 54-58 Nathan Road, Tsimshatsui,
Kowloon, Hong Kong.
Retailing Shop:-
Shop 39, 2/F., Mirandor Mansion, 54-64B Nathan Road, Tsimshatsui,
Kowloon, Hong Kong. [Tel: 2377 1173]
Business
Name:- (Same address)
K.G.N. Trading Company, Hong Kong.
[BR No. 37717945-001]
37717945
1111689
Managing Director: Mr. Firoz Alam
Mohammad
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry dated 23-02-2012)
|
Name |
|
No. of shares |
|
Firoz Alam MOHAMMAD |
|
10,000 ===== |
(As per registry dated 23-02-2012)
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Name (Nationality) |
Address |
|
Firoz Alam MOHAMMAD |
Flat D, 9/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong
Kong. |
(As per registry dated 23-02-2012)
|
Name |
Address |
|
Kamal SACHAR |
Flat A, 20/F., 7 Broadway, Mei Foo Sun Chuen, Kowloon, Hong Kong. |
The subject was incorporated on 23rd February, 2007 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 706, 7/F., Beverley Commercial
Centre, 87-105 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong, moved to
the present address in August 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter, Wholesaler and Retailer.
Lines: All
kinds of diamonds and jewellery.
Employees: 7. (Including retailing shop)
Commodities Imported: India, Israel, Belgium, etc.
Markets: Hong
Kong, other Asian countries, etc.
Terms/Sales:
COD or as per
contracted.
Terms/Buying: L/C, T/T, D/A,
etc.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$10,000.00
Profit or Loss: Making a small profit in the past years.
Condition:
Keeping in a
satisfactory manner.
Facilities:
Is making use
of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Normal.
Having issued 10,000 ordinary shares of HK$1.00 each, K.G.N. Trading Co. Ltd. is wholly owned by Firoz Alam Mohammad who is an Indian. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. Mohammad is also the only director of the subject.
The business name of the subject K.G.N.
Trading Company [KGNTC] is also located the same operating office. Mohammad is also the Manager of KGNTC.
Business commenced in February 2007, the
subject is a diamond importer, exporter, wholesaler and retailer. The subject has got a retailing shop located
at Shop 39, 2/F., Mirandor Mansion, 54-64B Nathan Road, Tsimshatsui, Kowloon,
Hong Kong. Commenced business on 13th
August, 2008, this shop is engaged in retailing all kinds of jewellery and
diamond products such as bracelets, brooches, earrings, necklaces, rings,
pendants, etc.
The subject moved to the present new address
in August 2011. This office is also a
retailing outlet. Including its old one,
the subject now has two retailing shops.
The shops receives local customers, China
and foreign tourists. The subject’s
diamonds are imported from India, Belgium and the other European countries,
etc. Some of the raw diamonds are
polished or processed in Hong Kong.
Finished products and polished diamonds are retailed in Hong Kong,
or exported to Japan and the other Asian countries. Business is normal.
In order to penetrate the international
market further, the subject and KGNTC have taken part in fairs and exhibitions
held in Hong Kong and other foreign large cities.
On the whole, since the history of the
subject is over six years in Hong Kong, consider it good for normal
business engagements.
DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
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The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
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The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
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Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and
philanthropy.
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Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
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Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
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Excerpts from Times of India dated 30th October 2010 is as
under –
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Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February 2013.
Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India
exported $ 1.84 billion worth of polished diamonds in February 2013. A senior
executive of GJEPC said, “Export of cut and polished diamonds started falling
month-wise after the imposition of 2 % of import duty on the polished diamonds.
But February, 2013 has given a new ray of hope to the industry as the export of
polished diamonds has actually increased by 28 %. It means the industry
is on the track of recovery and round tripping of diamonds has stopped
completely.” Demand has started coming from the US, the UK, Japan and China.
India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following prudent
risk management norms when lending money to gems and jewellery sector. This
follows the implementation of Basel III accord – a global voluntary regulatory
standard on bank capital adequacy, stress testing and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.63 |
|
UK Pound |
1 |
Rs.83.67 |
|
Euro |
1 |
Rs.71.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.